So you have decided to finally open your commercial property. After all that hard work, construction phase, and investment funnelled into this new venture, you want to make sure that all bases are covered by picking the right commercial property owners insurance. You, however, want to go for an insurance policy that covers all your property’s needs while maintaining low premium. Will it be possible?
Points to Consider
When thinking of finding low premium yet complete commercial property owners insurance, the following aspects must be carefully considered:
- Consider the risk level of your property’s location. Low-risk neighbourhoods often, garner equally low premium insurance policies. On the other hand, the matter may not be the same for high risk areas. You cannot just settle for something less costly but offer little protection to your property. Instead, go for something within your means without sacrificing blanket security.
- Tax deductibility must also be considered. Many low premium insurance offer little chance of tax deductions as compared to foolproof yet more costly premiums. Anyway, areas with high tenancy rate, regardless of risk level, often offer the best tax incentives to commercial property owners.
- A commercial property’s close proximity to other must-have properties like school, supermarket, and so on must also be considered. This aspect does not just impact risk assessment but also reputation, rental fees, and the likes. Everything about the property’s surroundings will ultimately have a huge impact to your insurance policy.
- Another loosely considered aspect in commercial property insurance clauses is the crime statistics in the area. From vandalism rates to serious and petty crimes, insurers and brokers alike look into these aspects in crafting the right insurance plan for you. Often, the higher or lower the statistics on crime can help gauge the insurance premium for the property.
- Another important statistical information looked into by insurers is the jobs market. Commercial properties situated in an area teeming with employment opportunities tend to attract more tenants. This may somehow affect rate of rental as well as insurance premiums.
- Carefully consider the type of amenities included in your commercial property. Less amenities means lower risks involved. The lower the risk means the lower the premium. However, less amenities in your commercial property may also mean less tenancy opportunities.
- Multi-layered security elements may also lead to low insurance premium. Using of state-of-the-art locks and burglar alarm systems can deliver a big punch where insurance cost is concerned. The more protected a commercial property means the lower certain risks like theft, arson, and other crimes or damaging incidents will be. When this happens, premium will also be lowered.
- Future developments to a commercial property as well as surrounding areas will also play a role in calculating insurance premium. Some top-rated insurers usually research on zoning plans for a certain area and see its impact to properties within.
- Natural disaster zoning and preparedness is also high on the list of calculating commercial property owners insurance premium. While earthquake and other natural disasters are often covered, take note of flooding and cyclone policy clauses in regards to your premium.
- Other concerns delve on seasonal renting cycles, vacancy statistics, and rental rates. Insurers also look into these matters to fully create a sound insurance plan for your property while working around a reasonable premium.
The Bottom Line
When looking for an airtight commercial property owner’s insurance policy, premium costs are largely dependent but not limited to the property itself. Other concerns and risks in its surroundings, future development, and other factors are also to be considered. In the end, it is no longer important to simply acquire low premium but, most importantly, to pick a policy that addresses all your needs.
Looking for low premium foolproof commercial property owners insurance? Schedule a consultation with Landlord Insurance HQ by calling 1300 815 344 or request a quote online now! We can also tailor an insurance portfolio to satisfy your property’s unique requirements.